The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. GDS Holdings (GDS) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.
GDS Holdings is one of 234 individual stocks in the Business Services sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. GDS Holdings is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for GDS' full-year earnings has moved 414.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, GDS has moved about 29.2% on a year-to-date basis. In comparison, Business Services companies have returned an average of -10%. As we can see, GDS Holdings is performing better than its sector in the calendar year.
Another stock in the Business Services sector, Sims Metal Management Ltd. (SMSMY), has outperformed the sector so far this year. The stock's year-to-date return is 14.7%.
Over the past three months, Sims Metal Management Ltd.'s consensus EPS estimate for the current year has increased 43.3%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, GDS Holdings is a member of the Technology Services industry, which includes 111 individual companies and currently sits at #177 in the Zacks Industry Rank. On average, stocks in this group have lost 3.3% this year, meaning that GDS is performing better in terms of year-to-date returns.
In contrast, Sims Metal Management Ltd. falls under the Waste Removal Services industry. Currently, this industry has 21 stocks and is ranked #86. Since the beginning of the year, the industry has moved -1.6%.
Investors interested in the Business Services sector may want to keep a close eye on GDS Holdings and Sims Metal Management Ltd. as they attempt to continue their solid performance.
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GDS Holdings (GDS): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).